Measure G - Palm Desert Sales Tax Measure

Font Size: + -

Feedback Print

Background

The City of Palm Desert provides a variety of general municipal services, including fire, police, and emergency 911 medical response; senior and library services; parks maintenance; homelessness response; and other general maintenance and services. In recent years, the City’s ability to maintain these services has become more challenging due to operating costs rising at a faster pace than revenues.

The Palm Desert Public Safety, Roads, City Services Measure was placed on the November 5, 2024 ballot to raise additional revenue to support the City’s General Fund.

Palm Desert Public Safety, Roads, City Services Measure Defined

The Palm Desert Public Safety, Roads, City Services Measure seeks voter approval to authorize a 1 cent sales tax to maintain city services. If approved, the Measure is estimated to generate approximately $25 million annually to support Palm Desert’s General Fund.

A “YES vote” approves the City’s proposal; a “NO vote” rejects the proposal.

A one cent sales tax, is a 1% tax on items bought and sold in the City. The sales tax is levied at a rate of one cent per dollar, or one percent. It is standard language used interchangeably when discussing a sales tax increase. Currently for every dollar spent on a taxable item in Palm Desert, the sales tax is 7.75 cents. The proposed increase under Measure G would make that 8.75 cents, thus the reference to a one cent tax.

City Attorney's Impartial Analysis, Primary Arguments, and Rebuttal Arguments

The City Attorney's Impartial Analysis, Primary Arguments, and Rebuttal Arguments related the Measure G are available for public review in the City's online records center. Unredacted documents can be requested from the City Clerk's Office during regular business hours.

Palm Desert Public Safety, Roads, City Services Measure Ballot Question

“PALM DESERT PUBLIC SAFETY, ROADS, CITY SERVICES MEASURE. To maintain Palm Desert’s long-term finances, City services such as 911 emergency medical/police/fire response, fire protection, response to property crime/thefts, keeping public areas safe/clean, maintaining streets, roads, parks, youth/senior programs; retain/attract local businesses; and for general government use, shall the measure establishing a 1¢ sales tax generating approximately $25,000,000 annually until ended by voters, requiring public spending disclosure, funds controlled locally, be adopted?”

Palm Desert Public Safety, Roads, City Services Measure Summary

If approved by voters, the Measure will provide additional funding that could be used to:

Maintain 911 emergency medical, police and fire response services
Keeping public areas safe and clean
Maintain streets and roads
Address homelessness
Maintain libraries, parks and recreation programs

And any other services and infrastructure maintained by the General Fund.

Accountability Provisions

All funds generated by the Palm Desert Public Safety, Roads, City Services Measure will be for the City of Palm Desert to provide local general services.
By law, the State cannot take this funding away, and no funds may be transferred to another agency.
The City is required to publicly report on the expenditure of revenues.

Proposed Revenue Measure & Ballot Measure

Presentation on Sales Tax Measure

Please use the following link to view a presentation on the sales tax measure:

Presentation slide deck

Frequently Asked Questions

Please use the accordion widget at the bottom of this page to review frequently asked questions.

How Much Will it Cost Residents and Others Shopping in Palm Desert?

How Much Will it Cost Residents and Others Shopping in Palm Desert?

The cost to an individual depends on the amount of goods or services purchased. If passed, a taxable purchase of $20 in the City of Palm Desert would cost an additional $0.20.

The proposed tax increase would be collected in the same manner as the existing City sales and use tax and would be subject to all same tax exemptions. Most groceries, prescription medicine and medical supplies, rent, utilities, diapers, and feminine hygiene products would be exempt from this tax. For a complete list of all the sales and use tax exemptions, please visit the California Tax Service Center.

Will Visitors Pay the Tax?

What is the Five-Year Plan if the Measure is Successful?

Palm Desert Transaction And Use Tax - Five Year Spending Plan And Priorities

PRIORITY - FIRE PREVENTION/EMERGENCY RESPONSE

Project #1: Fire Station 102 Construction and Staffing

The City has reallocated bond proceeds intended for lower priority projects to build Fire Station 102. Upon its opening, the Fire Services costs are estimated to increase $7.5M in the first year to operate the new station and ladder truck. Additionally, Cal-Fire who provides the staffing for fire services in Palm Desert through the contract with the County of Riverside, has implemented new requirements that require additional staffing to accommodate the various changes including limiting the max number of hours each fire person is permitted to work. The associated costs immediately increase costs by an additional $3M annually beginning in 2025-26. Revenues associated with the growth in the North Sphere grow at a much slower pace and will not be able to support the increased staffing needs to maintain current emergency service levels. Funding from the could be used for these costs.

Project #2: Fire Station 33 Rehabilitation

Over a period of years, the City has transferred funds from the General Fund to reserve funds necessary to rehabilitate the 30+ year old Fire Station 33. Current estimates are at $6M. Costs to house the staff during rehabilitation have not been included in the budget. Funding from the Tax could be used to pay these costs, while not limiting service to the community or risking the safety of the staff during that time.

Project #3: Fire Station 71 Reconstruction

Over a period of years, the City has transferred funds from the General Fund to reserve funds necessary to rehabilitate the 30+ year old Fire Station 71. Current estimates are at $7M. Costs to house the staff during rehabilitation have not been included in the budget. Funding from the Tax could be used to pay these costs, while not limiting service to the community or risking the safety of the staff during that time.

PRIORITY - PUBLIC SAFETY

Project #1: Increase Public Safety Patrol Staffing (3)

The Public Safety Committee has identified additional patrols in the City as a priority to address traffic issues and rising crime rates. The cost for 3 additional police officers is $1.3M in FY 2024-25. Overall public safety costs typically increase at approximately 3-5% annually. As the City continues to grow, we anticipate the need for an additional three police officers in Year 4 of the plan.

PRIORITY - INFRASTRUCTURE REPAIR AND EQUIPMENT REPLACEMENT

Project #1: North Sphere Flood Control Infrastructure and Emergency Plan

As a result of Tropical Storm Hilary, City staff has analyzed ways to address those areas of the City that were adversely impacted. The North Sphere was impacted by flooding, silt, and debris that moved eastward from the Morongo basin. The $6M in cleanup costs were covered by City emergency reserve funds. Staff hopes to recover approximately $3-4M of those costs through insurance and FEMA claims. However, maintaining and improving infrastructure, expanding retention basin areas, and ensuring the cities storm water infrastructure network is properly maintained and improved will be paramount to managing long-term impacts for residents.

Project #2: North Sphere Public Works Staffing (3)

As the City continues to grow, additional public works crews are required to maintain the city's infrastructure network . Staff estimates the cost for 3 additional crew members to be roughly $360,000 in 2024-25 dollars. The growth in north PD including new roadways, sidewalk, drainage and park infrastructure and additional staffing or contracts will be required to maintain new assets.

PRIORITY - PARKS, RECREATION, AND LIBRARY EXPANSION

Project #1: Palm Desert Library Construction and Staffing

The City has reallocated bond proceeds intended for lower priority projects to help build the Palm Desert Municipal Library. Costs are currently estimated at $30M for construction. There currently is approximately $20M in proceeds available, with the remaining $10M requiring the use of reserves and/or funding from another source such as the sales tax.

Project #2: North Sphere Regional Park and Staffing

A small portion of the costs for the construction of the North Palm Desert Regional Park is currently covered by bond proceeds. However, the majority of the $20M estimated costs would be paid through the use of reserve funds, or funding from another source, such as the sales tax to complete construction. Depending on the ultimate design and use of the park facilities, additional staffing will be required, which could be paid from the sales tax funding.

PRIORITY - FINANCIAL RESERVES

Project #1: Replenishment of Emergency and Operation Reserves

The City may be required to use reserve funds to pay for numerous facility maintenance and capital improvement costs over the next 5 years. Additionally, planning and preparing for natural disasters, by reserving for emergencies is important, as evidenced by the swift response to Tropical Storm Hilary. Palm Desert's ability to recover from such events is necessary to support community resiliency. Sales tax revenue would be allocated to replenish the reductions to reserve in accordance with the reserve policy. This standard supports the City's continued effort to maintain fiscal responsibility and not having to rely on debt financing.

What if the Palm Desert Public Safety, Roads, City Services Measure Doesn’t Pass?

What if the Palm Desert Public Safety, Roads, City Services Measure doesn’t pass?

If the Palm Desert Public Safety, Roads, City Services Measure is not approved, the General Fund will not receive the sales tax revenues identified in the Measure. The City Council will then have to decide, as part of the budgeting process, whether other revenues are available to pay for City programs and services, or whether City programs and services will have to be reduced.

Was the Community Consulted prior to the Measure Being Placed on the Ballot?

Was the Community Consulted prior to the Measure Being Placed on the Ballot?

The City of Palm Desert hosted a series of Community Outreach meetings and conducted a Community Priorities Survey. At these meetings, staff provided an overview of the City’s services, budget outlook, and potential options to cut services and enhance revenue.

The City also distributed a city-wide informational mailer in English and Spanish to educate the public about the financial challenges facing the City and to invite the public to our Community Town Hall events.